The GST Council meeting held on 3rd September 2025 brought several important changes in GST rates across different sectors. As we explained in our earlier blog on the GST Council’s decisions, the revised rates are expected to give relief in some areas and create compliance challenges in others.
But one big concern for businesses remained:
What about the stock already packed and printed with old MRPs before the GST rate changes?
To solve this, the Ministry of Consumer Affairs, Food & Public Distribution has now allowed revision of MRP on unsold stock that is directly impacted by these GST rate changes. This is a welcome move for manufacturers, packers, and importers.
Govt Circular on MRP Revision – What It Means
The Consumer Affairs Ministry has now clarified on 09 September 2025 that businesses can revise MRPs on unsold stock to reflect the new GST rates, subject to certain conditions.
Key Features of the Notification
Who can revise?
Manufacturers, packers, and importers of pre-packaged goods.
Till when?
Allowed up to 31st December 2025, or until the stock is sold – whichever comes first.
How to revise the MRP?
- By stamping, stickers, or online printing.
- The original MRP must remain visible and cannot be erased.
Extent of revision
- The MRP can be changed only to the extent of GST difference.
- Example: If an appliance had MRP ₹5,000 with 12% GST earlier, and now GST is 18%, the MRP can only be increased by the tax difference – not beyond that.
Use of packaging
- Old packaging material can still be used.
- But revised MRP must be clearly shown using stickers or stamps.
Why This is a Big Relief
For Businesses
- Saves cost of repackaging or discarding old stock.
- Provides legal cover to sell existing stock transparently.
For Consumers
- Ensures fairness – price revisions are only for GST changes, not arbitrary.
- Protects buyers from unfair trade practices.
Practical Example
Let’s say a pair of shoes priced at ₹1,120 (inclusive of 12% GST) is now taxed at 5% GST.
- Old MRP = ₹1,120 (Base price ₹1,000 + GST ₹120).
- After rate cut, new MRP = ₹1,050 (Base price ₹1,000 + GST ₹50).
Here, the manufacturer/importer can revise the MRP downward to ₹1,050 using a sticker or stamp. Consumers benefit immediately, while the business doesn’t need to waste packaging.
Conclusion
This move by the Government is a balanced step – it addresses industry concerns about compliance costs while also protecting consumers’ right to fair pricing.
Businesses should act quickly to:
- Identify their GST-affected stock.
- Update MRPs correctly using stickers or stamping.
- Notify authorities and dealers as required.
With the deadline of 31st December 2025, this is the time for businesses to clear old stock legally and responsibly.
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